KBank to support Chinese auto base in Thailand

Bangkok (CNS) –Kasikornbank (KBank) plans to loan Chinese automobile company Dongfeng Motor Corporation about US$3.5 million to support construction of a plant in Thailand, according to an official announcement on Thursday.

Dongfeng Motor will use the money to establish its factory at an industrial park in Chachoengsao Province. It expects an annual production of 5,000 vehicles and will serve as the sole base for the car-maker in Southeast Asia, said Patchara Samalapa, executive vice president of the bank.

Samalapa said KBank is offering financial support to Chinese manufacturers to attract them to set up production bases in Thailand. When the ASEAN Economic Community is officially built in 2015, it will be convenient to export to the surrounding areas, including Laos, Cambodia, Myanmar and Malaysia, he added.

At present, nearly 2,000 Chinese enterprises invest or operate in Thailand, Samalapa said, of which 800 enjoy financial services by KBank with a total credit amount of 2.2 billion baht (US$71.4 million). Among all Thailand commercial banks, KBank owns the largest market share in Chinese business.